JACKSONVILLE, Florida – Where to start to give an allowance to our children? What age and how much is appropriate? Should it be related to household chores?
These are all understandable questions, but all experts agree that these answers are on a case-by-case basis.
The American Institute of Certified Public Accountants surveyed 1,000 parents and about 2/3 said they gave their children an allowance.
On average, children in the United States receive $ 30 per week, or about $ 120 per month.
This same survey found that 52% of parents think the entire allowance should be earned and 27% think it should be partially earned and partially offered.
So when should children start receiving an allowance? Most financial experts agree that this is a personal preference.
Child development experts behind Sesame Street have determined that children as young as 3 years old understand the difference between wants and needs, which could make this an ideal time to start giving an allowance.
Scholastic.com recommends starting between 5 and 6 years old.
However, experts say there are pros and cons to trying a household chore allowance.
According to Rocket HQ, some benefits include:
If the allowance is linked to household chores, children learn the relationship between work and pay.
The use of an allowance as an incentive motivates children to accomplish their tasks.
Children can earn extra money for extra chores, beyond daily or weekly housework, just as they could when they are teenagers with summer jobs.
However, some drawbacks include:
Your kids may feel like chores are always worth a reward instead of just doing their part for the family.
Children may not be motivated to do their housework when they don’t need the money or have saved enough.
It can be difficult to give an allowance if you have a small budget but have a large family.
According to Rocket HQ, a popular way to start a child with an allowance is to give them the age of a child per week.
So a 7-year-old would receive $ 7.
If that sounds like too much, another popular philosophy is to give children half their age each week.
If you want to correlate child allowance with household chores, RoosterMoney recommends different chores and rates based on age.
For example, tasks appropriate for a 4 and 5 year old include:
Clean your room, do the laundry, put away your toys, make your bed.
Each of these tasks can range from 20 cents for picking up toys to 40 cents for doing laundry.
For 6 and 7 year olds:
Household chores may include cleaning the table, taking out the trash, and setting the table.
Ranging from 40 to 50 cents per chore.
For 10 and 11 year olds:
This could include tidying up groceries, doing laundry, cleaning the kitchen.
Ranging from 60 cents to $ 1.50
Once your child becomes a teenager, consider getting them a prepaid debit card to deposit their allowance on. Visa Buxx and the Mastercard Allow card and intended for children 13 years of age and over. Your child can only spend what’s on the card without going into debt.
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